Slowing the Growth of Coal Power Outside China: The Role of Chinese Finance

Authors :
Morgan Hervé-Mignucci, Xueying Wang

In recent years, China has grown into a major provider of coal power finance in overseas markets, replacing financing by major development institutions. In September 2015, China made a surprise announcement that it would commit to “controlling public investment flowing” into high carbon overseas projects. This was followed by an announcement in November 2015 that OECD countries are committing to common standards for coal subsidies, also potentially significantly restricting international finance for coal power. However, information on overseas coal finance, particularly Chinese finance, has been lacking. CPI has been able to identify China’s role in international coal power generation deployment to provide the most complete estimate of Chinese finance for overseas coal projects to date as well as estimates of the potential impact of China’s recent announcement.

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